Amendments to the TIS

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Changes to Australia’s TIS have been approved and will:

• broaden the definition to include buildings with a floor space of at least 20% used for commercial; or
• apply if the building sum insured of $50 million AUD or greater, whether used for commercial or other purposes.

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What this means for you

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If your insurable property falls within the new definition, you will notice a new terrorism levy on your policy to adequately reflect the terrorism levy charges.

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It means that residential buildings over $50 million will now be subject to a Terrorism levy where previously they were not required to contribute to the premium pool.

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The shift in commercial floor space from 50% to now 20% means there will now be a number of mixed use buildings, which will now need to contribute a premium.

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When does the change take effect?

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These changes will take effect from 1 July 2017 and Honan will issue all renewals due on or after 1 July according to the new definition.

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How is the terrorism levy calculated?

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The applicable levy is set in line with a tier allocation as determined by the ARPC.

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Tier Allocation and % levy

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The premium is charged by postcode and split into three tiers according to population density.

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The ARPC levy is currently calculated as follows:

• Tier A: up to 20% - are those cities with a population of more than 1 million covering the CBD areas.
• Tier B: up to 6% - are those covering the urban areas of all state capital cities, and cities with a population over 100,000.
• Tier C: up to 3% - Postcodes allocated to Tier C are those geographic postcodes not allocated to either A or B.

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If you are unclear about these changes or would like more information please contact us or speak with your Account Manager.

Further details are also available at the ARPC website www.arpc.gov.au